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Investing.com -- Circle, the company behind the USDC stablecoin, made a notable entry into the public market with its stock price soaring from an initial public offering (IPO) price of $31 to closing at $107 in its debut week, according to a recent Bybit Crypto Insights Report. This performance has set a precedent in the cryptocurrency sector, suggesting a significant undervaluation by Wall Street in the pre-IPO phase.
The report indicates that investment bankers might have underestimated Circle’s potential, as the company experienced an oversubscribed IPO followed by a robust demand for its shares post-public listing. This outcome has highlighted the changing dynamics in the valuation of crypto-related companies and the potential for more blockchain firms to join the capital markets with unconventional valuation methods.
Circle’s successful IPO is seen as a reflection of the current favorable climate for crypto in the U.S., which is contributing to the increasing mainstream acceptance of digital assets. The Bybit report also draws attention to the broader implications for the industry, setting a new benchmark that other companies may follow.
Looking ahead, the Bybit report identifies six crypto and blockchain companies that are potential candidates for IPO by 2025. These companies are making strides in various sectors of the industry, from decentralized finance (DeFi) to security, and are expected to command valuations in the billions.
The favorable regulatory environment under the current U.S. administration is cited as a catalyst for the anticipated wave of crypto IPOs. The entry of these companies into public markets could further cement the role of the cryptocurrency industry in the global financial landscape.
The Bybit report also cautions investors by comparing Circle’s post-IPO journey with that of Coinbase (NASDAQ:COIN), which faced challenges during the 2022 market correction. It underscores the importance of considering both the fundamentals of the companies and the competitive landscape in the crypto industry.
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